Suppose That All Workers Value a 1 Percent Reduction in the Workplace

question 73

Multiple Choice

Suppose that all workers value a 1 percent reduction in the workplace injury rate at $1,000 per year. The cost of reducing the injury rate by 1 percent is $200 per year for each worker. Firms currently pay $20,000 per year to workers, without any effort to improve safety. If new firms began to offer workers $19,500 and a 1 percent reduction in the injury rate, then the value to each worker of the new firms' offer would be ______ compared to ______ at the existing firms.

• A)$19,500; $20,000
• B)$20,500; $20,000
• C)$19,700; $19,800
• D)$20,000; $20,000

---

Definitions:

Equitable Remedy

Judicial remedies granting relief based on fairness, including injunctions and specific performance, distinguished from remedies by way of monetary damages.

Damages

Monetary compensation awarded by a court to a person who has suffered loss or harm due to the wrongful act of another.

Mandatory Injunction

A court order requiring an individual or entity to perform a specific action, often to correct a wrong or prevent further harm.

Violate Contractual Term

The act of failing to perform obligations or duties as outlined in a contract.